Posts Tagged ‘silver price’

First Majestic achieved significant production ramp up throughout 2010 at their La Encantada project after a successful expansion. Today the company announced a similar upgrade for their La Parrilla project. The budget for this operation is US$27.3 million. All the required capital will be funded internally by cash flows. Completion will be in phases starting with the land clearing and preparation (already started, December 1) and finishing with the expansion of the cyanidation circuit early in the first quarter of 2012.

This day was a beautiful day for silver, the highest price since 1980 was reached and finally breaking through the $30.00 mark. First Majestic gained 6.68% just today. We bought First Majestic in September 2009 @ CAD$2.66 it closed @ CAD$13.58 today, that means a whopping 410% gain! We sold 35% of our shares in First Majestic today to take profit. We will use the capital in the next big correction. We are following many interesting companies at the moment and are almost ready to announce a new stock pick! We will take this “additional time” at all-time highs to continue to read year reports, news releases, websites, geological reports and make sure to pick the next First Majestic when the in inevitable correction comes. We will probably wait till gold goes back to about $1385 again, for silver a pull-back to $29 might be a interesting moment to step in.

First Majestic Silver Corp. is pleased to announce the expansion of its 100% owned La Parrilla Silver Mine, located in Durango, Mexico has commenced. The extremely successful completion of the expansion of the Company’s La Encantada Silver Mine has allowed management to focus its efforts on the Company’s next major expansion project with ground breaking that started on December 1st, 2010.

During the past three years the La Parrilla mine has undergone extensive development to prepare the mine for higher production levels. During the past six months this expansion plan has been assessed and defined to optimize the La Parrilla operation into the future. Once this construction project is completed, the La Parrilla mine will be operating at twice current levels. This expansion will result in the mill capacity reaching 1,600 tpd from the current 850 tpd and will effectively double the current output of the La Parrilla operation from approximately 1.5 million ounces to 3.0 million ounces of silver equivalent annually.

The following activities have been achieved to date:

Engineering and design work has been completed for the expansion of the processing plant including a new and larger crushing area, the addition of a third ball mill and the increase of capacity of both the flotation and cyanidation circuits. Each circuit’s capacity is currently 425 tpd and once the expansion is completed, each circuit will continue to run in parallel but at the higher rate of 800 tpd for a total capacity of 1,600 tpd.

Engineering plans for the Rosarios/La Rosa, San Marcos, Quebradillas and Vacas mines have been defined and scheduled, including the planning of development and preparation of required production areas, planning and scheduling the construction of a new production shaft for the Rosarios mine, and all other required mine infrastructure to achieve the expanded production levels.

All final documentation required for the Environmental Impact Statement and the ‘Change of use of Land’ have been submitted to the SEMARNAT (the government environmental authorities) office in Durango, with final approvals expected prior to year end.

Timelines for the Construction Project:

Land clearing and preparation activities commenced on December 1st, 2010

Construction of the new crushing area will begin in January 2011. A new third ball mill has already been purchased and is on site and is expected to be ready for installation by June 2011.

The expansion of the flotation circuit is planned for completion by the end of July 2011. This new circuit will produce both a lead and zinc concentrate. A full year of production at 800 tpd is expected to produce 5,673,096 pounds of lead and 5,236,704 pounds of zinc. In flotation, the silver will report to the lead concentrate which is expected to contain 1,429,991 ounces of silver annually.

The expansion of the cyanidation circuit will follow in the second half of 2011 with the replacement and expansion of eight leach tanks and the construction of four additional leach tanks. Several new technologies will also be utilized; similar to those adopted in the Company’s recently completed La Encantada operation. These items will include; new clarification filters, new induction furnaces and new filter presses for the tailings in order to recover and re-use solution and to save on water consumption. In addition, the plan includes new systems for automation of feeding processes for chemicals and reagents.

Inauguration of this newly expanded cyanidation circuit is expected to take place early in the first quarter of 2012. Once completed, this larger 800 tpd cyanidation circuit will produce an additional 899,792 ounces of silver in the form of silver Doré bars annually.

The total capital budget for this expansion is US$27.3 million, consisting of: US$17.7 million for plant equipment and construction costs; US$2.6 million for additions to the underground fleet; US$3.8 million for underground mine development and US$3.2 million for infrastructure including a new power line and substation. All required capital for this expansion project will be funded internally from cash flows.

The internal rate of return (IRR) on this investment is expected to be 126% considering a price of silver of US$20.00 per ounce and lead and zinc prices of US$1.00 per pound.

Once in full operation at the newly expanded rate of 1,600 tpd, the La Parrilla Silver Mine will produce 3.0 million silver equivalent ounces annually consisting of 2.3 million ounces silver and 0.7 million ounces of silver equivalents in the form of lead and zinc. The expected Total Cash Costs are anticipated to be US$5.50 per ounce of silver.

First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.

This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

This company has been our favourite since we started our website, it was our second gold/silver buy (first was International Royalty Company, sold at a 101,4% profit right before it was taken over by Royal Gold). It has been the backbone of our portfolio, and we expect it to be so for years to come.
We bought Silver Wheaton in June 2009 @ US$9,95 and in March 2010 @ US$14,95
Just in July of this year we issued a buy alert on Silver Wheaton to buy below $US 19,95
Using today’s intra-day high of $US37,20 this means respectively up 273,8% ; up 148,8% and up 86,4%
These results are slightly below our expectations, but because of logistical reasons within the company, and record breaking silver prices we expect a whopping fourth quarter.
The gold/silver ratio we continue to fall. With the influx of more investors searching an inflation hedge and gold getting very expensive, silver will get more attention. It just feels better if you can buy almost 50 grams of silver instead of one gram of gold.
Before the quarterly results were released yesterday, we issued another buy alert to our newsletter subscribers to buy below US$ 34,00 ; price target: US$ 52,00

VANCOUVER, Nov. 8 /CNW/ – Silver Wheaton Corp. (“Silver Wheaton” or the “Company”) (TSX, NYSE:SLW) is pleased to announce its unaudited results for the third quarter ended September 30, 2010.

THIRD QUARTER HIGHLIGHTS
————————————————————————-
– Net earnings more than doubled to a record US$69.2 million (US$0.20
per share), compared with US$33.6 million (US$0.11 per share) in
2009.

– Operating cash flows increased 55% to US$70.5 million (US$0.20 per
share)(1), compared with US$45.4 million (US$0.14 per share)(1) in
2009.

– Record attributable silver equivalent production of 5.9 million
ounces (5.5 million ounces of silver and 7,000 ounces of gold),
representing an increase of 41% over the comparable period in 2009.

– Silver equivalent sales of 4.7 million ounces (4.3 million ounces of
silver and 7,100 ounces of gold), lagging production for the quarter
due primarily to the build-up of concentrate inventory as the
Penasquito mine ramps up production, as well as timing of concentrate
shipments from the Yauliyacu and Campo Morado mines.

– As at September 30, 2010, approximately 2.2 million payable silver
equivalent ounces attributable to the Company have been produced at
the various mines and will be recognized in future sales as they are
delivered to the Company under the terms of their contracts.

– Total cash costs(1) of US$4.09 per silver equivalent ounce, compared
with US$4.08 per ounce in 2009.

– Cash operating margin(1) increased 42% compared to 2009, to a record
US$15.72 per silver equivalent ounce, while average silver prices
over the same period increased by 29%.

– Goldcorp Inc. announced that its world-class gold-silver-lead-zinc
Penasquito mine achieved commercial production during the quarter
with peak throughput rates as high as 105,000 tonnes per day. The
ramp up to full production capacity of 130,000 tonnes per day is
anticipated by early 2011. Annual production attributable to Silver
Wheaton from the mine is expected to average approximately 7 million
ounces of silver over the estimated 22 year mine life.

– Barrick Gold Corp.’s world-class gold-silver Pascua-Lama project
remains on track to enter production in the first quarter of 2013,
with detailed engineering and procurement nearing completion and
earthworks underway. Once in production, Pascua-Lama is forecast to
be one of the largest and lowest cost gold mines in the world with an
expected mine life in excess of 25 years. In its first five years of
operation, Silver Wheaton’s attributable silver production is
expected to average 9 million ounces annually.

– Goldcorp completed the sale of the San Dimas mine to Primero Mining
Corp. In conjunction with the sale, Silver Wheaton amended its silver
purchase agreement relating to the mine. The term of the silver
purchase agreement, which was set to expire in 2029, has been
extended to life of mine. During the first four years following
closing of the transaction, Primero will deliver to Silver Wheaton a
per annum amount equal to the first 3.5 million ounces of payable
silver produced at San Dimas and 50% of any excess, plus Silver
Wheaton will receive an additional 1.5 million ounces of silver per
annum to be delivered by Goldcorp. Beginning in the fifth year after
closing, Primero will deliver to the Company a per annum amount equal
to the first 6 million ounces of payable silver produced at San Dimas
and 50% of any excess. Goldcorp will continue to guarantee the
delivery by Primero of all silver produced and owing to the Company
until 2029, and a payment of US$0.50 per ounce for any shortfall
below 215 million cumulative silver ounces delivered to Silver
Wheaton by the end of 2031. Primero has provided Silver Wheaton with
a right of first refusal on any metal stream or similar transaction
it enters into.

———————-
(1) Refer to discussion on non-GAAP measures at the end of this press
release.

“Silver Wheaton had record production in the quarter, anchored by the continued successful ramp up of one of our cornerstone growth assets, Goldcorp’s world-class Penasquito mine in Mexico,” said Peter Barnes, Chief Executive Officer of Silver Wheaton. “Penasquito reached commercial production during the quarter and expects to achieve full production capacity in early 2011, in what promises to be another year of significant production growth for Silver Wheaton.”

“While quarterly sales were lower than production, due in part to the build-up of concentrate inventory as Penasquito ramps up production, as well as the timing of shipments from the Yauliyacu and Campo Morado mines, we still achieved record earnings. Increased shipments in the fourth quarter are expected to make up for the sales shortfall and we remain on track to meet production guidance of 23.5 million silver equivalent ounces in 2010, growing to approximately 40 million ounces by 2013.”

“In an environment of continued economic uncertainty, investment demand for silver remains very strong, and silver prices approached 30 year highs in the quarter. This resulted in record cash operating margins of US$15.72 per ounce, generating strong free cash flows to fund future growth.”

“Lastly, during the quarter, Goldcorp finalized the sale of its San Dimas mine to Primero Mining, an emerging mid-tier gold producer. In conjunction with this, Silver Wheaton amended its silver purchase agreement, which continues to provide Silver Wheaton with a Goldcorp guarantee, extends the agreement from a fixed term to life-of-mine and, most importantly, incentivizes Primero Mining to increase silver production at this high-quality, low-cost, mine. San Dimas remains a key asset within our portfolio and we are confident that the amended silver purchase agreement will create additional long term value for our stakeholders.”

This earnings release should be read in conjunction with Silver Wheaton’s unaudited MD&A and Financial Statements, which are available on the Company’s website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com.

A conference call will be held Tuesday, November 9, 2010, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call use one of the following methods:

Silver Wheaton is the largest silver streaming company in the world. Forecast 2010 production, based upon its current agreements, is 22.0 million ounces of silver and 28,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 40 million silver equivalent ounces. This growth is driven by the Company’s portfolio of world-class assets, including silver streams on Goldcorp’s Penasquito mine and Barrick’s Pascua-Lama project.

Today a fresh all-time high was set for gold at $1399,40 and silver hit another multi decade high at $26,95

How is our portfolio doing? In 2009 we bought:

Avino Silver and Gold Mines Ltd. up 219%

First Majestic Silver Corp. up 274%

Great Panther Silver Ltd. up 85%

Minera Andes Inc. up 176%

Silver Wheaton up 231% and in 2010 we bought:

Seabridge Gold Inc. up 6%

Rubicon Minerals up 18%

Not a bad result so far we think. What to expect? Expect lots of volatility and a continuing bull market. We think gold will hit $1400 in the beginning of next week, and silver will break trough $27,00 Before we enter 2011 we see gold going as high as $1500 – $1550 When that major psychological barrier is near we might even see more volatility than last day’s. A passage of the $1500 mark can result in so much selling pressure, that daily gains or losses could surpass $100 It might take till the summer for prices to settle near the $1400 level again. Than we have to wait till fall again to gain much, much more. Silver gains will continue to outperform gold. If you are planning to invest in gold or silver wait till gold has surpassed the $ 1400 mark, then selling pressure will push gold back to $1320 – $1350 and the perfect buying moment has come.

Sorry I haven’t posted anything for such a long time, I am very glad I am blogging again! After almost six months yet again another all-time high has been reached in the price of gold. Last week there was is slight pull-back, but today we see bargain hunting again. I expect the gold price to remain in the $1160 – $1250 range for the coming months. This is not what happens in ‘normal’ years, than there always is a drop of the gold price in the summertime, so not this year! The biggest development in the last moths has been the fact that the gold price now moves independently from the dollar index. I visit www.kitco.com on a daily basis. The Kitco Gold Index gives the investor a better view of the price development. We probably will have to wait till September before we will see a steady price of about $ 1300 However, there may also be upward as well as downward spikes these coming months. We still advise to buy gold whenever is falls below $1180 I myself don’t do trackers or Forex trading, but this volatile market is sure making them interesting tools for the more aggressive trader.

Some people say we are in a bubble

We’re not! When your taxi driver or shoe polisher advises you to buy gold, than we are in a bubble. You do see the financial media have picked up the marked trend, and are following it closely. This merely was the first step towards bubble forming. This will end in a bubble, that’s for sure as well. But with ever diminishing gold and silver deposits on this earth make sure a firm bottom for prices has been formed now. When you correct the 1980 prices of gold and silver for inflation, the all time gold price would be around $6000 and that of silver about $120 when we reach these ranges, and we will, we can talk about a bubble again.

What about the silver price?

The price explosion I discussed in the previous post has not happened, yet. For this event we probably have to wait for September as well. With rising gold prices the material becomes more and more ‘out of reach’ for some small investors and the general public. This will result is a correction of the gold/silver ration to its historical value of about 15. If we apply this ratio to today’s gold price of $1200 silver should cost $80 per ounce. One reason for prices not to have exploded yet is the price manipulation of this market. You can read some very interesting facts about this manipulation via this link. For information about manipulation of the gold price please visit www.gata.org

The European dept crisis will continue at least for two years. The so much discussed PIIGS countries will contribute to a further decline of the Euro. Now about them PIIGS, this surely must be the best marketing hoax since the Blair Witch Project. The people who made up this term confidently left out Great Britain and the United States. Those two countries have issues with their money base and depts. far greater than the PIGGS counties. Therefore physical gold and silver will give the best ‘insurance’ for the longer term. We managed to pick up some more shares of Silver Wheaton (SLW) at a price of $14.95 We have put in another buy order at a price of $17.50 We will monitor the price of this stock closely. Established in 2004, Silver Wheaton has quickly positioned itself as the largest metals streaming company in the world. The company currently has thirteen silver purchase agreements and two precious metals agreements where, in exchange for an upfront payment, it has the right to purchase all or a portion of the silver production, at a low fixed cost, from high-quality mines located in politically stable regions.

Forecast 2010 production, based upon the company’s current agreements, is 22.2 million ounces of silver and 20,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver equivalent ounces. No ongoing capital expenditures are required to generate this growth and Silver Wheaton does not hedge its silver production.

Silver Wheaton’s industry-leading growth profile is driven by a portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine in Mexico and Barrick’s Pascua-Lama project straddling the border of Chile and Argentina. The company’s unique business model creates significant shareholder value by providing considerable leverage to increases in the silver price while reducing the downside risks faced by traditional mining companies. Silver Wheaton has an experienced management team with a strong track record of success and is well positioned for further growth.

Since last week prices of both silver and gold went into a sharp correction. And that is what it is, a correction!

This might be the last change to buy in on physical gold and silver and mining stock at reasonable prices. This correction is a healthy step in the way up. The majority of investors are interpeting the GDP data of the U.S.A totaly wrong. We see the first signs of inflation in these numbers. And inflation should mean higher prices for gold and silver. The stock markets are experiencing a classic end-of-year rally, and a large correction into the new year is inevitable.

This week we sold all our shares of International Royalty Company (AMEX:ROY | IRC:TO) @ US$ 7,15 we bought IRC in June (before our website was launched) at a price of $ 3,55 a very nice profit so we think! IRC was the very first company we invested in. You can look into our entire portfolio at http://cashinfo.org/about/

We wired some of our profits to our gold account at BullionVault.com and will buy gold when once the transfer is complete. Please click our affiliate banner below to find out how this company works by receiving a free gram of gold to practice with! Note: If you sign up via the banner below CashInfo.org will earn commission if you fund your account and start trading.

There are some interesting companies we are following at the moment. When we decide to invest in one of these companies we will let you know immediately on this website!